Monday's Stocks to Watch: PayPal, MicroStrategy, and More
Last Friday, a news outlet reported that JP Morgan Chase (JPM) planned to charge financial technology firms an access fee. This would sharply erode the advantages that PayPal (PYPL), Block (XYZ), and other fintech firms previously enjoyed.
If implemented, PayPal would need to pay the bank to access customer data. The fee would depend on the data used. Currently, it, along with Coinbase (COIN) and Robinhood (HOOD), has access to the customer’s bank data at no cost. Fintech firms would have to pass the new costs to customers.
Be wary of PYPL stock falling further from here.
In the Bitcoin holding segment, MicroStrategy (MSTR) might trade to all-time highs. The firm keeps selling debt to fund its purchase of Bitcoin (BTC-USD). This creates wealth for the firm, so long as BTC prices rise. Bitcoin closed at $117,000 over the weekend, up by 25% YTD. It is up by over 105% in the last year.
The U.S. dollar dominance (UUP) is in question, helping lift silver (SLV), gold (GLD), and cryptocurrency prices. Investors doubt that the U.S. will continue to collect tariffs at no cost to its economy. Without tariffs, the currency would weaken. Furthermore, stablecoins could replace the U.S. dollar for international trade. That way, the U.S. will no longer collect fees for trading activities.
